Deck 4: Environment, Innovation, and Sustainability

Question 1

The millennials are characterized with the ease of multitasking, desire for immediate gratification, continuous contact with others, and less concern with knowing things than with knowing where to find out about things.

Answer 1

True

Question 2

Offshoring is the return of jobs from foreign locations as companies establish new domestic operations.

Answer 2

False

Question 3

The baby boomers are "digital natives" who grew up in technology-enriched homes, schools, and friendship environments.

Answer 3

False

Question 4

High environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is low.

Question 5

High-uncertainty environments require the ability of decision makers to respond quickly as new circumstances arise and new information becomes available.

Question 6

Internet censorship is the deliberate blockage and denial of public access to information posted on the Internet.

Question 7

The least challenging and certain situation is an environment that is both complex and dynamic.

Question 8

Competitive advantage achieved through costs will help an organization earn profits with prices that one's competitors have difficulty matching.

Question 9

The legal-political conditions in the global business environment are uniform across all countries.

Question 10

Rising labour costs, higher shipping costs, and public criticisms about destroying local jobs can cause global firms to return to their home countries.

Question 11

The general environment comprises the actual organizations, groups, and persons with whom an organization interacts and conducts business.

Question 12

Some of the important socio-cultural conditions of the general environment include more people of colour and more women entering the workforce, accompanied by decreases in both religious diversity and the number of workers coming from non-traditional families.

Question 13

Generational cohorts consist of people born within a few years of one another and who experience somewhat similar life events during their formative years.

Question 14

Legal-political conditions in the general environment include norms, customs, and social values regarding human rights, trends in education and related social institutions, and demographic patterns in society.

Question 15

Innovation is a low priority when executives and leaders try to steer organizations through complex and uncertain environments.

Question 16

Creating positive change in organizations is easy, despite the complexity, uncertainty, anxiety, and risk involved.

Question 17

Customers and owners are important resource input stakeholders in an organization's value creation, whereas suppliers and communities are important product output stakeholders in an organization's value creation.

Question 18

A sustainable business both meets the needs of customers and protects the natural environment for future generations.

Question 19

The more uncertain the environment, the easier it is to analyze environmental conditions and predict future states of affairs.

Question 20

Inflation, income levels, and job outlook are part of the socio-cultural conditions in the general environment.

Question 21

Within the context of Gary Hamel's "wheel of innovation," scaling concerns testing ideas in concept; discussing them with peers, customers, clients, or technical experts; and building initial models, prototypes, or samples.

Question 22

Highly innovative organizations have top managers who understand the innovation process, tolerate criticism and differences of opinion, take all possible steps to keep goals clear, and maintain the pressure to succeed.

Question 23

The concept of reverse innovation got its start as global firms moved away from viewing innovation as a "home market" activity that creates new products and services for distribution to "foreign markets."

Question 24

An organization that does not provide health insurance to employees can be categorized as one with poor human sustainability.

Question 25

Sustainable development places greater importance on the needs of the present generation than on the needs of future generations.

Question 26

The executives of Dunes Inc. pay equal attention toward maximizing profits of the firm, maintaining the well-being of its employees, satisfying its customers, and preserving the environment. This indicates that Dunes Inc. uses the triple bottom line approach.

Question 27

Economic conditions in the general environment include ___.

A) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations
B) inflation, income levels, gross domestic product, unemployment, and job outlook
C) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society
D) development and availability of technology, including scientific advancements
E) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism

Question 28

Pfeffer's concern on human sustainability focuses on the importance of employees as they are organizational stakeholders.

Question 29

Invention is the generation of a novel idea or unique approach to solving problems or crafting opportunities.

Question 30

General environment conditions exclude which one of the following categories?

A) technological conditions
B) human relations conditions
C) economic conditions
D) legal-political conditions
E) natural environment conditions

Question 31

Which of the following represents the economic conditions in the general environment?

A) patents
B) infrastructure
C) Internet access
D) unemployment rate
E) norms

Question 32

Legal-political conditions in the general environment include ___.

A) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations
B) inflation, income levels, gross domestic product, unemployment, and job outlook
C) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society
D) development and availability of technology, including scientific advancements
E) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism

Question 33

___ environment consists of economic, legal-political, socio-cultural, technological, and natural environment conditions.

A) Specific
B) Task
C) General
D) Stakeholder
E) Customer

Question 34

Environmental capital is the supply of natural resources that we use to sustain life and produce goods and services for society.

Question 35

The initial step of assessing in the innovation process involves commercializing innovation by turning it into actual products, services, or processes that increase profits by improving sales or lowering costs.

Question 36

Technological conditions in the general environment include ___.

A) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations
B) inflation, income levels, gross domestic product, unemployment, and job outlook
C) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society
D) development and availability of technology, including scientific advancements
E) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism

Question 37

Business model innovations result in new ways of making money for the firm.

Question 38

Natural environment conditions in the general environment include ___.

A) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations
B) inflation, income levels, gross domestic product, unemployment, and job outlook
C) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society
D) development and availability of technology, including scientific advancements
E) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism

Question 39

Socio-cultural conditions in the general environment include ___.

A) philosophy and objectives of the political party or parties running the government, as well as laws and governmental regulations
B) inflation, income levels, gross domestic product, unemployment, and job outlook
C) norms, customs, and social values regarding human rights; trends in education and related social institutions; and demographic patterns in society
D) development and availability of technology, including scientific advancements
E) nature and conditions of the natural environment, including levels of public concern expressed through environmentalism

Question 40

Product innovations result in better ways of doing things.

Question 41

A country faced severe recession that resulted in loss of jobs and low income levels, which in turn affected the lifestyles of the consumers. Which of the following conditions are influencing the environment of the country?

A) political conditions
B) legal conditions
C) technological conditions
D) socio-cultural conditions
E) economic conditions

Question 42

Which of the following is a criterion of a good economic condition in the general environment?

A) the rising income inequality among the working class
B) the low unemployment rate in the society
C) the introduction of new developments in the technological areas
D) the introduction of carbon neutral methods for sustainable development
E) the occurrence of long-term joblessness among the people of the society

Question 43

Which of the following are characterized by ease of multitasking, desire for immediate gratification, continuous contact with others, and less concern with knowing things than with knowing where to find out about things?

A) Millennials
B) Gen Xs
C) Baby Busters
D) Golden Boomers
E) Baby Boomers

Question 44

Jamie has a diverse collection of the latest video games. He also owns a mobile phone with a number of applications. His school is well equipped with Internet facilities. Which of the following generational cohorts does Jamie most likely belong to?

A) Baby Boomer generation
B) Gen X generation
C) Baby Buster generation
D) Millennial generation
E) Golden Boomer generation

Question 45

Which of the following aspects of demographics comprises of generational cohorts?

A) income levels
B) race
C) age
D) ethnicity
E) gender

Question 46

Diversity issues relating to educational opportunity, access to technology, housing options, and so on are parts of the ___ conditions in the general environment.

A) economic
B) legal
C) technological
D) socio-cultural
E) political

Question 47

Which of the following is a part of the socio-cultural conditions in the general environment?

A) inflation
B) financial markets
C) government policies
D) intellectual properties
E) demographics

Question 48

Adams Inc., an automobile corporation based in London, shifts its manufacturing activities to China in order to minimize its cost of production. Which strategy has is Adams Inc. adopted here?

A) repatriation
B) nationalization
C) backshoring
D) offshoring
E) reshoring

Question 49

The government of Floraine imposes certain rules and regulations regarding the interest rates and other transactions for its financial institutions. This is an example of the ___ conditions of the general environment.

A) natural
B) technological
C) socio-cultural
D) legal-political
E) educational

Question 50

The marketing executives of Exphyne Inc. observe the demographics of the population at its different areas of operation. They work toward satisfying the needs and preferences of individuals belonging to various demographic groups. The factors that they analyze include age, ethnicity, income levels, and gender. This implies that Exphyne Inc. focuses on the ___ conditions in the general environment to make sales.

A) technological
B) legal
C) philosophical
D) socio-cultural
E) political

Question 51

Which of the following would qualify as a reason for reshoring?

A) low costs in the target country
B) complicated logistics in the target country
C) excellent customer service in the target country
D) low shipping costs in the target country
E) low labour costs in the target country

Question 52

Techni Asset, a software corporation based in Canada, used to operate from several countries with lower labour costs. When the firm started to incur high costs of production in the foreign countries and received complaints and criticisms about the loss of local jobs, the firm decided to return to its home country. This change made to the firm's global strategy is an example of ___.

A) offshoring
B) outsourcing
C) nationalization
D) privatization
E) reshoring

Question 53

Finheat, a financial services organization, advertises its financial products and instruments on social networking sites and other websites. This implies that the firm is utilizing the ___ conditions in the general environment.

A) natural
B) legal
C) technological
D) socio-cultural
E) political

Question 54

Vane has the ability to multitask and maintain continuous contact with others. She believes in receiving immediate gratification. This implies that Vane is most likely a ___.

A) Baby Boomer
B) Millennial
C) Gen X
D) Baby Buster
E) Golden Boomer

Question 55

The managers of Vortex Inc. stress the importance of team norms, business ethics, and respect for human rights in the organization. This implies that the organization is working on the ___ conditions in the organizational environment.

A) economic
B) legal
C) socio-cultural
D) technological
E) political

Question 56

Which of the following involves outsourcing of jobs to foreign locations?

A) reshoring
B) offshoring
C) repatriation
D) nationalization
E) backshoring

Question 57

___ are "digital immigrants" who have had to learn about technology as it became available.

A) Baby Boomers
B) Gen Ys
C) Gen Xs
D) Millennials
E) Gen Zs

Question 58

Crayons Inc., a media corporation headquartered in Toronto, has its operations across different nations. The activities of the firm are affected by the government policies and the ideologies of the legislative institutions existing in the host countries. Which of the following factors are affecting the firm's operations?

A) economic conditions
B) socio-cultural conditions
C) legal-political conditions
D) technological conditions
E) natural environment conditions

Question 59

Which of the following examples illustrates the legal-political conditions in the general environment?

A) bureaucratic decisions made in a nation
B) financial market situation existing in a nation
C) health and nutritional values of a nation
D) information technology systems or infrastructure of a nation
E) population demographics of a nation

Question 60

The patent attorney of Rayon Inc. was accused of stealing the organization's invention. This scenario is an example of the ___ conditions of the general environment.

A) natural
B) legal-political
C) technological
D) socio-cultural
E) educational

Question 61

All of the following are true statements regarding environmental uncertainty except

A) there is a lack of complete information concerning what developments will occur in the external environment.
B) most organizations encounter relatively little uncertainty in their environments.
C) complexity refers to the number of different factors that exist in the environment.
D) the rate of change in factors in the environment is one component of environmental uncertainty.
E) environmental uncertainty makes it difficult to understand potential implications for the organization.

Question 62

Which of the following examples illustrates a firm that has achieved competitive advantage through costs?

A) a firm that uses patented technology to deliver goods and services to customers on time
B) a firm's ability to adjust and adapt to different demographic segments and satisfy their needs
C) a firm that invests only a small amount on promotion and maximizes profits by charging low prices
D) a firm's technology that creates high quality products and services
E) a firm that specializes in developing timely new products

Question 63

Linkage Communications produces mobile phones, smart phones, and laptops. In terms of longevity and user-friendliness, the firm's products are rated the best. Additionally, it offers applications and features with the latest technology. Which of the following has enabled Linkage Communications to achieve a competitive advantage over its competitors?

A) quality
B) costs
C) flexibility
D) delivery
E) adaptability

Question 64

Which of the following examples illustrates the technological conditions in the general environment?

A) features and applications available on an individual's phone
B) income levels of an individual
C) housing options for an individual
D) job options for an individual
E) educational opportunities for an individual

Question 65

Which of the following statements accurately describe the concept of environmental uncertainty?

A) Environmental uncertainty consists of two components - complexity of the environment and rate of change in the environment.
B) High environmental uncertainty occurs when the rate of change in the environment is high and the complexity of the environment is low.
C) Low environmental uncertainty occurs when the rate of change in the environment is low and the complexity of the environment is high.
D) All of the above statements accurately describe environmental uncertainty.
E) None of the above statements accurately describe environmental uncertainty.

Question 66

Stakeholders

A) are described as employees who move to foreign locations to reduce costs to the organization.
B) are individuals who propose laws and regulations, government policies, and the philosophy and objectives of political parties.
C) are owners of organizations who take risks motivated by desperation to get out of bad situations.
D) refer to the employees who return from different host countries and help in establishing new domestic operations.
E) are the persons, groups, and institutions directly affected by an organization.

Question 67

Which of the following is true of stakeholders?

A) Members of the specific or task environment are often described as stakeholders.
B) Stakeholders are influenced by their stakes, but they are not allowed to influence it in return.
C) An organization's performance does not affect the stakeholders.
D) All stakeholders belong to the generational cohort of Baby Boomers.
E) All stakeholders are "digital natives" who grew up in technology-enriched homes, schools, and friendship environments.

Question 68

A sustainable business

A) is involved in risk taking from position of performance difficulty.
B) has lack of information regarding what exists in the business environment and what developments may occur.
C) creates products or services that become so widely used that they largely replace prior practices and competitors.
D) meets the needs of customers as well as protects the natural environment for future generations.
E) is an organization motivated by desperation to escape existing difficulties.

Question 69

The specific environment can be described in terms of which of the following?

A) stakeholders
B) persons, groups, or institutions that are affected by the organization's performance
C) the task environment
D) all of the above
E) none of the above

Question 70

In a country, the Web access through mobile devices doubled each year since 2009 and during 2010, on average, 2 million people used Facebook each day. Which of the following environmental condition does this information portray?

A) economic condition
B) legal-political condition
C) natural condition
D) socio-cultural condition
E) technological condition

Question 71

InGen Inc. implements the use of social media, digital sharing of presentations, data, files, and holds regular virtual meetings. This indicates that the firm has reasonably well-equipped ___ conditions in the organizational environment.

A) natural
B) technological
C) legal
D) socio-cultural
E) political

Question 72

The ___ environment includes the people and groups with whom an organization interacts.

A) general
B) natural
C) specific
D) macro
E) external

Question 73

Which of the following examples illustrates a firm that has achieved competitive advantage through technology?

A) a firm that invests less on its production processes
B) a firm that focuses on producing zero defect products
C) a firm that uses patented expertise in developing a nuanced product
D) a firm that spends very less on advertising and promotional costs
E) a firm that caters to only a selected few customer needs

Question 74

Which of the following falls on the positive side of risk-taking behaviour of organizations?

A) risk taking from position of performance difficulty
B) risk taking motivated by desperation to get out of bad situation
C) risk taking from hard time dealing with problems without losing focus
D) risk taking with the ability to deal with problems as they arise
E) risk taking from little staying power

Question 75

___ means that there is a lack of complete information regarding what exists and what developments may occur in the external environment.

A) Environmental complexity
B) Environmental dynamism
C) Environmental change
D) Environmental uncertainty
E) Environmental information

Question 76

The government of Drewtopia introduced a new program whereby all its business enterprises will adopt "green values," and minimize and recycle its waste disposal. Which of the following conditions has the government taken care of by this decision?

A) economic
B) socio-cultural
C) political
D) natural
E) technological

Question 77

Which of the following is true of value creation by businesses?

A) Businesses create value for customers through realized profits and losses.
B) Businesses create value for employees by wages earned and job satisfaction.
C) Businesses create value for competitors through the benefits of long-term business relationships.
D) Businesses create value for suppliers by the citizenship they display.
E) Businesses create value for local communities by stimulating markets and innovations that didn't exist before.

Question 78

Which of the following examples would qualify as a potential problem of the existing ever-present technological condition?

A) an organization advertising its products on social networking websites
B) an organization's employees regularly engaging in online pastimes during work hours
C) an organization conducting regular virtual meetings with its clients
D) a musician promoting his debut musical project through media websites
E) an organization implementing digital sharing of files, presentations, and projects

Question 79

Four Rollers Corp., an automobile company, benefits by spending less than its competitors on labour, operations, promotions, and features offered. This enables the firm to charge relatively lower prices on its goods from its customers. Which of the following is a competitive advantage of the firm?

A) high quality
B) low costs
C) flexibility
D) delivery
E) adaptability

Question 80

___ refers to the extent to which the organization is developing value for and satisfying the needs of important strategic constituencies.

A) Constituency development.
B) Organization development.
C) Value creation.
D) Strategic needs management.
E) Constituency creation.